Tether Prints One Billion USDT To Strengthen Reserves, Crypto Community Questions Stablecoin Transparency

JAKARTA - Tether, the company that manages the world's largest stablecoin, USDT, has just added to their reserves by printing one billion USDT. The move comes as part of an 'inventory update' on the Ethereum network.

USDT is a cryptocurrency whose value is tied to US dollars. The goal is to provide price stability and liquidity for crypto users. However, USDT is also often criticized for being less transparent and vulnerable to manipulation.

Tether CEO Paolo Ardoino said that this additional USDT printing was to prepare for future publishing and chain exchange requests. He added that these tokens are still in Tether's cash as 'aUtorization but have not yet been published'. This means that these tokens are not yet circulating in the market.

This USDT printing is similar to traditional financial practices, where companies maintain optimal stocks to meet demand without hoarding goods. However, this also raises questions about Tether's credibility and accountability.

Blockchain tracking platform Whale Alert reported this USDT printing on December 25, and received various reactions from the crypto community. Some consider this a standard operational procedure, while others doubt its transparency and impact on the crypto market, including the price of Bitcoin.

Tether has shown rapid growth over the past year. According to CoinGecko data, its market capitalization has increased by almost 38% since January 2023, reaching $91 billion (Rp1,412.7 trillion). Tether is also involved in various activities related to Bitcoin, such as mining and back-up management.